The invention discloses an environment-friendly medicament for industrial sewage treatment. The environment-friendly medicament is prepared from the following raw materials in parts by weight: 1.5 to 3 parts of organic alcohol, 12 to 24 parts of city sludge, 1 to 4 parts of soybean meal, 2 to 6 parts of straw, 5 to 9 parts of folium ginkgo, 0.5 to 3 parts of activated carbon, 2 to 5 parts of graphite, 12 to 20 parts of polyferric sulfate, 6 to 10 parts of kieselguhr, 3 to 6 parts of epoxy resin, 8 to 18 parts of acetic acid, 1 to 3 parts of vitamin C, and 8 to 15 parts of metacrylic acid ester. The invention also discloses a preparation method of the medicament. According to the environment-friendly medicament for the industrial sewage treatment and the preparation method thereof provided by the invention, the raw materials are wide in source and low in cost, the preparation process is simple, and the production cost is low; the city sludge and the straw are adopted, so that the aims of recovering and recycling wastes are achieved; the components play a synergic effect, so that the medicament can be used for flocculating and settling heavy metal ions, COD (Chemical Oxygen Demand) and BOD (Biochemical Oxygen Demand), the settling speed is fast, the corrosion of discharged water on the equipment is reduced, and the medicament has favorable economic benefit and social benefit.